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“Today’s ONS figures confirm that real incomes are rising strongly, with wages up 3.2 per cent year on year against a background of broadly stable prices. In the context of a continuing recovery sustained by growth of real incomes and consumption, it is surprising that employment fell. While downward blips are not unknown – the last was in early 2013 – this one is more unexpected given that the recovery is now much better established. If output growth is sustained, these figures could be the first signs of the recovery in productivity which will be necessary to support the growth of real incomes in the longer term.”

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This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.